Thursday, July 16, 2009

Credit Card Holders Delinquency Rate Improved In June

NEW YORK (AP) — Two major credit card providers reported
more improvements in delinquency rates in June on Wednesday, an
encouraging sign that borrowers are not in as bad shape as many
had feared.
American Express Co. said in a regulatory filing that
accounts at least 30 days past due shrunk to 4.4 percent of
total loans during the month ended June 30, after falling to 4.7
percent in May and 4.9 percent in April.
Capital One Financial Corp., a major credit card issuer
based in McLean, Va., said its delinquency rate among U.S. cards
improved for a fourth straight month, falling to 4.77 percent
from 4.9 percent in May.
Investors cheered the improving delinquency data, sending
shares of both companies sharply higher. American Express rose
$2.76, or 11.3 percent, to close at $27.22, while Capital One
rose $2.73, or 11.8 percent, to $25.84.
Despite the improvement in delinquency rates, both
companies reported mixed results on another measure — the
percentage of loans they have given up on as unrecoverable, or
charge-offs.